In one of the most sensible plans I've heard in a long time, Barack Obama has announced that the U.S. government will buy about 17,600 vehicles from American auto companies for its fleet. It'll cost about $285 million, taken from the American Recovery and Reinvestment Act.
The vehicles will come from GM, Ford and Chrysler, and will be purchased by June 1, 2009. The purchase will also include 2,500 hybrid sedans, which will be ordered by April 15. There's also $15 million dedicated to advanced technologies, including CNG and hybrid buses, and all-electric vehicles, with orders placed by September 30.
According to the press release, each vehicle purchased under the plan must have a better fuel economy than the vehicle it replaces, with an overall goal of a 10% improvement in fuel efficiency for the entire procurement.
It's sensible because you can throw all the money you want at a company -- no matter what it makes -- and it won't do any good if there are no buyers for the product it's selling. And cars, being such big-ticket items, are very hard to move off the lots when people lose their jobs, or aren't sure if they're next in line. It's going to take a lot more than 17,600 vehicles to turn this all around, but it's a step in the right direction.
